COMP XM R&D INNOVATION AND
PRODUCT POSITIONING PRACTICE TEST
2026
◉ To calculate the annual labor savings from increasing automation
one point
Answer: multiply Feat's labor cost by 10% labor savings for each
point of automation. Multiply the product of that calculation by the
number of sensors Feat sold last year. 10% of labor cost for Feat
(since it is only one level up) * units sold
◉ Payback (years)
Answer: project investment / annual savings
◉ asset turnover formula
Answer: divide sales by total assets
An asset turnover of three means there were $3 in sales for every
dollar in assets.
◉ what causes a high asset turnover (3)
Answer: low cash
,low inventory
plant and equipment nearly depreciated
◉ Digby invested $30,556 in plant improvements last year. They use
fifteen year straight line depreciation and anticipate a salvage value
of $5 million. What is their annual depreciation charge for this
equipment?
Answer: 30,556-5,000 = 20,556
20,556/15 = 1,704
1,704,000
◉ In the depreciation problem you just solved, what will the book
value of the $30,556 in plant improvements be after its first year of
use?
Answer: 30,556 - 1704 = 28,852,000
◉ (acumen builder 7)
If Baldwin would have paid out 40% of their net income as a
dividend, what dividend per share would it have declared?
Answer: Find out net income of Baldwin first. Multiply with 40%.
Then Divide the product by number of shares outstanding.
, $3.31
◉ (acumen builder 7)
How many months of inventory does Dixie have?
Answer: 618 current inventory divided by the product from above
4.2 months
◉ (acumen builder 7)
Andrews is considering changing their receivables policy from net
30 days to net 42 days to stimulate sales. Based on a 365 day year,
how much more cash will this policy change tie up in receivables?
Answer: A/R from b/s * 42/30 then see the increase (difference)
from current A/R
4,733,836
◉ payback
Answer: costs / savings
PRODUCT POSITIONING PRACTICE TEST
2026
◉ To calculate the annual labor savings from increasing automation
one point
Answer: multiply Feat's labor cost by 10% labor savings for each
point of automation. Multiply the product of that calculation by the
number of sensors Feat sold last year. 10% of labor cost for Feat
(since it is only one level up) * units sold
◉ Payback (years)
Answer: project investment / annual savings
◉ asset turnover formula
Answer: divide sales by total assets
An asset turnover of three means there were $3 in sales for every
dollar in assets.
◉ what causes a high asset turnover (3)
Answer: low cash
,low inventory
plant and equipment nearly depreciated
◉ Digby invested $30,556 in plant improvements last year. They use
fifteen year straight line depreciation and anticipate a salvage value
of $5 million. What is their annual depreciation charge for this
equipment?
Answer: 30,556-5,000 = 20,556
20,556/15 = 1,704
1,704,000
◉ In the depreciation problem you just solved, what will the book
value of the $30,556 in plant improvements be after its first year of
use?
Answer: 30,556 - 1704 = 28,852,000
◉ (acumen builder 7)
If Baldwin would have paid out 40% of their net income as a
dividend, what dividend per share would it have declared?
Answer: Find out net income of Baldwin first. Multiply with 40%.
Then Divide the product by number of shares outstanding.
, $3.31
◉ (acumen builder 7)
How many months of inventory does Dixie have?
Answer: 618 current inventory divided by the product from above
4.2 months
◉ (acumen builder 7)
Andrews is considering changing their receivables policy from net
30 days to net 42 days to stimulate sales. Based on a 365 day year,
how much more cash will this policy change tie up in receivables?
Answer: A/R from b/s * 42/30 then see the increase (difference)
from current A/R
4,733,836
◉ payback
Answer: costs / savings
